The Pew Center and the Nicholas Institute for Environmental Policy Solutions at Duke University held a briefing on the design and oversight of a successful carbon market. As Congress debates climate change legislation, one of the most critical yet least discussed issues is the development and oversight of a well-functioning carbon commodity market. This briefing frames and discusses many of the central issues in this process, including: overall market design, options for the choice of regulator, the role and importance of the derivatives market, and the types of rules and enforcement necessary to prevent market manipulation and abuses.

Watch the video and accompanying slides presented by each speaker listed below.

A market for GHGs will be different than other commodity markets.- Created to deliver an environmental goal- Emitters will have to participate- There will be a limited supply of compliance units (allowances and offsets) that will likely decrease over time.

The effectiveness of the market will have implications for the broader economy.

Key fundamentals of a successful market

Role and importance of the derivatives market

Oversight considerations, such as the types of rules and enforcement necessary to prevent market manipulation and abuses